Vermont Retainage Requirements
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Retainage Limit
Not Regulated by State Law
30 Day Pay Period
Any amount retained from a contractor must be released to the contractor within 30 days of acceptance of the work. Contractors must release retainage to their subcontractors within 7 days of retainage being released to them by the owner.
There's No Process to Recover
Not specified
Not Held In Escrow
In Vermont, contractors and owners do not need to hold retainage funds in a separate escrow account.
Retainage Amount
Not regulated by State Law.
30 Day Pay Period
Retainage must be released to the contractor within 30 days of acceptance of the work. Contractors and subcontractors must release retainage to their subcontractors within 7 days of receiving retainage payments.
There's No Process to Recover
Not specified
Retainage serves two general purposes: (1) To provide an incentive to the contractor or subcontractor to complete the project; and (2) To give the owner some protection against problems like liens, contractual defaults, delays, and more. In most states, laws exist to regulate how the parties use the retainage concept, mostly protecting some parties against abuse of the tool from others. The following are resources, legal information, and frequently asked questions about Vermont’s retainage requirements. The Vermont retainage statutes are reproduced below on this page.